European markets got a boost after China’s commerce ministry said the U. S. and China would hold trade talks on Jan. 7-8.
European shares opened higher on Friday following news that the U. S. and China will hold trade talks next week.
The pan-European Stoxx 600 index rallied almost 1 percent, with all sectors and major bourses in positive territory.
Basic resources stocks — with their heavy exposure to China — were the top gainers in Europe after China’s commerce ministry said the U. S. and Chinese would hold vice-ministerial level negotiations over trade in Beijing on Jan. 7-8. German copper producer Aurubis was the top sectoral performer, up 3.27 percent.
Looking at individual stocks, shares in Bayer rose after a U. S. judge moved to limit evidence in a trial over allegations that Monsanto’s glyphosate-based weed killer Roundup causes cancer. The German pharmaceuticals firm bought U. S. agriculture giant Monsanto last year for $63 billion. Shares of Bayer were up 2.57 percent.
On the other end, Sainsbury’s slumped close to the bottom of the Stoxx 600 after Jefferies, HSBC and Bernstein cut their price targets for the stock. Shares sank over 1 percent.
Investors are monitoring trade developments between Washington and Beijing for any clues as to how their trade dispute will reach a resolution. The two countries are trying to reach a breakthrough to resolve their differences over a 90-day tariffs truce.
Last year was marred by an intense sparring of tariffs between the world’s two largest economies, resulting in uncertainty for companies and nervousness for investors. Friday’s news buoyed Chinese equities, with the Shanghai composite climbing 1.
